Renowned financial educator and author of Rich Dad Poor Dad, Robert Kiyosaki, has issued a stark warning about the eroding value of the U.S. dollar.
In a recent post on his official X (formerly Twitter) account, Kiyosaki claimed that the dollar has lost as much as 95 percent of its purchasing power since his twenties, highlighting his growing concerns about inflation’s long-term impact on personal wealth.
A Cautionary Tale of Savings Under Threat
In his update, Kiyosaki shared an anecdote about a close friend and her husband who continue to keep their savings in U.S. dollars at a local bank.
Despite his repeated warnings, the couple remains unwilling to reconsider their approach, illustrating what Kiyosaki called a widespread misunderstanding of inflation’s corrosive effect on savings.
He described the situation as “appalling,” emphasizing that many Americans fail to grasp how rising prices in essential goods like groceries quietly diminish the value of their cash holdings.
Referencing a theme he has championed in his books, Kiyosaki reiterated that savers, once considered prudent, are now in a vulnerable position.
Rising Prices and a Shifting Economic Landscape
Recent data from the Bureau of Labor Statistics show that inflation in the U.S. remains above the Federal Reserve’s 2 percent target, contributing to persistent increases in the cost of food, energy, and housing.
According to the Federal Reserve Bank of St. Louis, the purchasing power of $1 in 1970 is equivalent to over $7 today, underscoring the steady devaluation of the dollar Kiyosaki describes.
Kiyosaki argued that relying solely on traditional savings accounts is no longer effective, given the negligible returns from current bank interest rates compared to the pace of inflation. He warned that many Americans are unprepared for the consequences if the dollar’s downward trajectory continues.
Doubling Down on Bitcoin as a Hedge
Alongside his critique of dollar-based savings, Kiyosaki revealed that he had purchased additional Bitcoin, reaffirming his belief that the cryptocurrency can act as a hedge against inflation.
He predicted that Bitcoin could one day climb to $1 million per coin, though he acknowledged the speculative nature of the forecast.
Kiyosaki expressed a willingness to risk losing up to $100,000 on his Bitcoin investment, viewing any potential loss as a valuable learning opportunity.
He stated, “In my life, risk-taking comes hand in hand with learning,” reinforcing his philosophy that bold financial decisions are often necessary to protect wealth from monetary depreciation.
Broader Economic Context and Investor Sentiment
Kiyosaki’s warnings come amid a growing chorus of financial commentators voicing concerns about the U.S. debt load and monetary policy.
Analysts at Goldman Sachs and JPMorgan have noted that persistently high inflation and slowing economic growth could pressure the Federal Reserve’s ability to balance rate cuts with inflation control.
Meanwhile, cryptocurrencies like Bitcoin are increasingly seen by some institutional investors as alternative stores of value. In a recent Fidelity Digital Assets report, more than 70 percent of surveyed institutional investors said they plan to allocate funds to crypto assets within the next five years, citing concerns about fiat currency stability as a major driver.
Call for Americans to Rethink Savings Strategies
Kiyosaki concluded his message with a call for Americans to reassess their financial habits in the face of ongoing economic uncertainty. He argued that simply depositing cash in banks is no longer a viable long-term strategy, given the silent erosion of value through inflation and the shifting dynamics of the global economy.
